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IBERIAN DAILY 29 AUGUST (ANÁLISIS BANCO SABADELL)

NEWS SUMMARY: ACCIONA, ACCIONA ENERGÍA.

The Ibex closed above 9,500 points
This week kicked off with gains for most global indices, initially in Asia after the support of the Chinese government to the market (cutting the stamp duty on stocks) followed by Europe and the US. In the Euro STOXX, all sectors ended with gains, led by Banks and Technology vs. the worse relative performance of Utilities and Real Estate. On the macro side, in the euro zone, M3 growth became negative unexpectedly for the first time since 2009 (-0.4% YoY vs. 0.6% prev.). The rise in household and corporate loans eased to 1.3% and 2.2%, respectively from 1.7% and 3.0% previously. In Italy, the government approved a decree enabling the acquisition of a stake in Telecom Italia’s network. On another note, the EU governments reject the request of additional € 86 Bn to alleviate the European budget and ensure further support to Ukraine. In the US, the Dallas Fed manufacturing index fell less than expected in August. In Japan, July’s unemployment rate rose unexpectedly, whereas the ratio of available jobs/seekers fell unexpectedly. In China, Bloomberg consensus GDP’24 growth estimate was cut to 4.5% from 4.8%.
What we expect for today
European stock markets would open with gains >+0.2%, with the good performance of technology and real estate. Currently, S&P futures are up +0.14% (the S&P 500 was +0.26% higher vs. the European closing bell). Volatility in the US dropped (VIX 15.08). Asian stock markets are climbing (China’s CSI 300 +1.13%, Japan’s Nikkei +0.25%).
Today in Germany we will learn September’s consumer confidence, in Mexico the final 2Q’23 GDP and June’s IGAE economic activity index, and in the US August’s consumer confidence, June’s home prices and July’s job vacancies (JOLTS). As for auctions, Italy will issue € 5.5 Bn in 6 & 12M-T-bills.